Bloomberg: Broker Hidden Road stops providing clients with access to crypto exchange Bybit

According to Bloomberg, Citadel Securities-backed brokerage Hidden Road will stop offering its clients the opportunity to trade on cryptocurrency exchange Bybit, according to people familiar with the matter. People familiar with the matter said Hidden Road informed its clients of the decision a few weeks ago. The move was triggered by a disagreement between the two companies over Bybit's know-your-customer and anti-money laundering requirements. Regulators in the United States and other countries are stepping up their scrutiny of cryptocurrency exchanges to ensure they are not used for money laundering and evading sanctions. Countries such as Russia and Iran have used digital assets to help bypass financial blockades imposed by Western countries. Dubai-based Bybit said it had begun a "comprehensive compliance review" of its prime brokerage business. Bybit said the review is aimed at ensuring compliance with relevant regulations and improving the way brokers serve their clients, but did not comment on its relationship with Hidden Road. The specific nature of the disagreement between the two companies on KYC and AML procedures is unclear. Prime brokers focus on institutional cryptocurrency traders, providing services such as execution, clearing and financing. Hidden Road provides top brokerage services across asset classes, including foreign exchange, precious metals and cryptocurrencies. The firm was founded in 2018 by Marc Asch, who previously worked at hedge fund billionaire Steven Cohen’s firm SAC Capital and Point72 Asset Management.